Berlin, Germany – The German government remains optimistic about a swift resolution in the ongoing trade dispute between the European Union and the United States. In a statement, the deputy government spokesperson, Sebastian Hille, expressed the government’s desire for minimal trade barriers worldwide, stating, “It is certainly in our interest to have as few trade restrictions as possible on the globe.”
When asked about a report by the Handelsblatt, which claimed that the European Commission is willing to accept a US tariff of 10%, Hille said, “If such an understanding is reached between the EU, which also leads the negotiations for Germany and the US, then that is a positive signal.”
According to the Handelsblatt, high-ranking Commission officials have confirmed that the sought-after agreement with the US could result in a 10% tariff, a move that would help avoid a trade war. However, the Commission emphasizes that it would only accept a higher US tariff under clear conditions and not as a long-term solution.
Initially, the Commission’s negotiators had insisted on a mutual tariff reduction. However, it now appears that the assessment has prevailed that Trump will insist on a minimum of 10% as he needs it to finance his planned tax cuts. “It will end up at a 10% tariff – that’s like a hidden tax increase for the Americans” a Commission official told the Handelsblatt.
The Brussels negotiators hope to avert higher US duties on cars, pharmaceuticals and microelectronics by accepting a flat tariff. However, the Americans have not yet agreed to limit their auto tariff to 10% against the EU.